Sycamore Networks, Inc. Announces Stockholder Approval of Sale of Intelligent Bandwidth Management Business and Liquidation and Dissolution of the Company

Sycamore Networks, Inc. (“Sycamore” or the “Company”) (NASDAQ: SCMR),
today announced that at a Special Meeting of Stockholders held on
January 29, 2013 (the “Special Meeting”), its stockholders authorized
the previously announced sale of substantially all of its assets related
to Sycamore’s Intelligent Bandwidth Management Business to a portfolio
company of Marlin Equity Partners (“Buyer”) pursuant to and on the terms
set forth in the Asset Purchase and Sale Agreement dated October 23,
2012 by and between Sycamore and Buyer. At the Special Meeting, the
stockholders also approved the dissolution of the Company following the
asset sale and adopted a plan of complete liquidation and dissolution.

On January 31, 2013, the Company completed the sale of its Intelligent
Bandwidth Management Business, which includes the Company’s optical
networking and multiservice access products and related services and
rights to the “Sycamore” name, to Buyer in exchange for a total purchase
price of $18.75 million in cash (subject to a working capital
adjustment) and the assumption by Buyer of certain related liabilities.
The Company will continue to use the name Sycamore Networks, Inc. as its
corporate name in connection with, and until the completion of, the
liquidation and dissolution of the Company. In addition, the Company has
established a new corporate website, www.scmrinc.com,
which will continue to provide access to Sycamore’s public company
filings and other corporate information. Information about the products
and services of the Intelligent Bandwidth Management Business will
continue to be available at www.sycamorenet.com.

The Board has not to date made a determination to proceed to file a
certificate of dissolution. Further information regarding the
liquidation and dissolution of the Company and the amount and timing of
distributions to stockholders will be provided in subsequent press
releases or filings with the Securities and Exchange Commission as such
information becomes available.

We wish to caution you that certain matters discussed in this press
release may constitute “forward-looking statements,” as defined under
the federal securities laws. Risks and uncertainties relating to the
Company could cause actual events and results to differ materially from
those stated or implied in such statements. Potential risks and
uncertainties include, among others, the Company’s Board of Directors
may determine to abandon or delay implementation of the plan of complete
liquidation and dissolution of the Company; the Company’s inability to
predict the timing or amount of any additional cash distributions to
stockholders; in the event that the Company proceeds with the plan of
complete liquidation and dissolution, the Company’s stockholders could
be liable to the Company’s creditors in the event the Company fails to
create an adequate contingency reserve to satisfy claims against it; and
the Company’s continuing costs associated with complying with public
company reporting requirements. More information about potential factors
that could affect the Company’s dissolution and the amount of any future
distributions is included in the section entitled “Risk Factors” in the
Company’s filings with the Securities and Exchange Commission. The
Company disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future results or otherwise.